Group 7
Write the first paragraph of your page here. Service Business(Tina Zeng) Industries are broadly classified as goods-producing and services-producing. The service business is a commercial enterprise that provides work performed in an expert manner by an individual or team for the costumers. A service business does not produce good, instead it sells a service to the public. There are many types of services, such as transportation, entertainment, education, and social media. Service businesses offer an intangible value to the society, and they are a very important part of our lives. Service businesses are major movie studios, gigantic telecommunications firms, major publishers, enormous engineering concerns, the shoe repair shop down the street, the law firm, the payroll service, the auto rental organization, the apartment house, the fast food chain, the dental clinic, and so on. For example, when you go to a dental clinic, the dentist is offering you a service by helping you to clean your teeth. By offering this professional skill, it produces an income. Service businesses can be large or small, but they are all seen in our daily lives. A service business, however, may also sell and deliver goods: people in the entertainment business sell CDs—although it is the films and the music that people are buying; in the information sector businesses sell newspapers and books—although it is the content of these media consumers are paying for. Merchandising Business(Sunny Wang) The merchandising business purchases product and resells them with a higher price to gain profit as the main source of revenue. Generally, a merchandising business will buy their products from a wide range of distributors and market their products in huge consumer shopping facilities. Similar to a service business that sells goods on the sideline, merchandising business may have their own service sideline, such as for clothing stores, they might also offer repairs and alterations on the side of their main business. What makes merchandising business different from the service business is that the merchandising companies sell product ass a main form of business, so they must stock inventory. In fact, stock is the sine qua non-financial asset for merchandise business. Also, merchandising business is not to be confused with manufacture business, since merchandising business does not manufacture products themselves. There are two types of merchandising companies; retail and wholesale companies. A retail company sells products directly to their customers, while a wholesale company buys items in bulk from manufacturers and resells them to retailers/other wholesalers. For retailing, customer service is key, since retailers directly interact with their customers, their success depends on the satisfaction of these customers. Retailers play their role as the final link to the supply chain between manufacturers and consumers, and retailing allows manufacturers focus on producing goods without being distracted by the effort that it takes to interact with customers who want to purchase those goods. Some examples of retailers include Costco, Starbucks, and Ties.com. On the other hand, wholesalers are usually in the middle of the standard chain of sales: manufacturer, wholesaler, and retailer. However, there are many exceptions to the rule. Companies such as Sam’s Club and BJ’s are wholesalers that buy their products from manufacturers and sell them directly to the public. These wholesalers can sell the products cheaper than the retailers since they were purchased cheaper. Manufacturing Business(Muskan) Manufacturing business is a business that uses components, parts of raw materials to make the final product. The products are sold to either the consumers or other manufacturing businesses that uses the product to make a different product out of it. Manufacturing business can be very easy or hard depending on the items that are required to make the final product. Manufacturing businesses in today’s world are normally comprised of machines, robots, computers and humans that all work in a specific manner to create a product. Manufacturing business make goods on orders and in bulks. The objective of this business is to improve quality, reduce costs,and improve on the time limit. It is also important for this business to make sure that their product is better than its competitive. Like any other business there are advantages and disadvantages. The main disadvantages of manufacturing business is costs, all the raw materials, labor, and machines are paid by the owner of the business. Another disadvantage is reliance of raw materials, the person who demands the goods can be very specific about the materials which can sometime cost more than the profit. Advantages of manufacturing would be demand, when the product is successful the demand of that product increases and usually is asked to make by the company who developed the good. Another advantage of this business would be job satisfaction, this business develops and item and when it gets successful worldwide that's the satisfaction of making your own item. Non-Profit Organization(Sunny Wang) The non-profit (or not-for-profit) business is a tax-exempt organization that carries on activities to meet social needs(religious, charitable, literary, artistic, scientific, or educational) which are not for financial profit. Also, the shareholders or trustees of an incorporated non-profit business do not benefit from the business financially. The organization retain all the money it earns, and the money is used for the expenses, operations and programs of the business. Some examples of non-profit businesses are church(organization), Rotary Club(a service club), The R.O.S.E Alliance(an organization), and community hockey league(a recreational club). Among the many non-profit organizations, the most common one is 501©3, one of the 29 types of non-profit organizations which are exempt from federal income taxes. "Benefits for becoming a 501©3: * Exemption from federal income taxes * Exemption from the Federal Unemployment Tax Act (FUTA) * Ability to accept contributions that are tax-deductible to the donor * Eligibility for government and foundation grants * Possible eligibility for some local and state tax exemptions" Although people who contributed in a non-profit business do not receive payment from the corporation’s revenues, state law(governs non-profit incorporations) and the IRS (regulates tax-exempt status) allow a non-profit to pay reasonable salaries to officers, employees, or agents for services rendered to further the non-profit corporations tax-exempt purposes. A non-profit business can take the form of a corporation, an individual enterprise(such as individual charitable contributions), unincorporated association, partnership, foundation, or condominium (joint ownership of common areas by owners of adjacent individual units incorporated under state condominium acts). Must be designed for non-profit when created and only pursue purposes permitted by statutes for non-profit organizations. Non-profit organizations include churches, public schools, public charities, research institutes, museums, etc.